Large companies can’t. A company building a hospital, isn’t going to have another job lined up, to start the day the one ends. The first job probably won’t be done on time, now you have two jobs going and only the same amount of employees. The last part of building is always the biggest rush to finalize punchlists and everything.
Smaller companies, yeah they typically can operate that way.
The company also has to get paid for the first job, before they can have the equity to be able to even buy materials for the next job.
So if you don’t get paid for 3 months until after the building is open, how do you start the next with no money to pay employees or buy materials? Without constant investors, since they. Always take profit too, self funded jobs are the most profitable.
I’m sure most companies would just love to be sitting a few million in debt though, and than have the job fall through to the next bidder since you can’t start for another 3 months and would put them behind before it starts. You also can’t charge the next person until some work is done, usually 20%. So you gotta float all your employees wages for 6 months if the last job hasn’t paid fully.
In fact, jobs like that typically bankrupt smaller companies since they don’t get paid quickly enough to pay debtors and employees.
Thats why a studio has multiple titles to work on. Also helps to have some ppl in the comp to chip in for bug fixes etc.
Large companies can’t. A company building a hospital, isn’t going to have another job lined up, to start the day the one ends. The first job probably won’t be done on time, now you have two jobs going and only the same amount of employees. The last part of building is always the biggest rush to finalize punchlists and everything.
Smaller companies, yeah they typically can operate that way.
The company also has to get paid for the first job, before they can have the equity to be able to even buy materials for the next job.
So if you don’t get paid for 3 months until after the building is open, how do you start the next with no money to pay employees or buy materials? Without constant investors, since they. Always take profit too, self funded jobs are the most profitable.
I’m sure most companies would just love to be sitting a few million in debt though, and than have the job fall through to the next bidder since you can’t start for another 3 months and would put them behind before it starts. You also can’t charge the next person until some work is done, usually 20%. So you gotta float all your employees wages for 6 months if the last job hasn’t paid fully.
In fact, jobs like that typically bankrupt smaller companies since they don’t get paid quickly enough to pay debtors and employees.